Credit cards wiped me out...

I’ll be honest with you. My history with credit cards was nothing to write home about. In fact, it was downright scary.

I’d been irresponsible. When I was young, I thought that money was easy to come by, as my parents seemed able to buy me most anything I wanted. All I had to do was put on the right sad face, pout and scream. Sometimes I wish I could go back and do my childhood all over again, if for no other reason than to give my parents a break.

Didn’t they teach me the right things?

OK, you may be thinking that my parents didn’t set proper boundaries for me or establish firm guidelines for behavior. You’d be right.
Once I reached college and was in a position to begin establishing my own credit, I took the reins with furious glee… and promptly drove my financial wagon off a cliff. A clean credit report was the last thing on my mind.

It seemed so easy. Credit applications covered campus like flood waters. In my bookstore bag, at the cafeteria, in the mail, left on my doorknob – everywhere. I saw friends buy snowboards, new clothes, video games and grub at the local taco shop anytime they needed it.

Just whip out the plastic. So simple, yet so dangerous.

What I didn’t realize is that compound interest compounds very quickly. A few trips for food, a few more for fresh threads and one late credit card payment quickly amount to a very large bill. I needed credit fixing, and I needed it bad. Payday loans helped me when I was in dire straits, but I needed a complete financial makeover if I was going to avoid this happening again.

So I changed my ways. I avoided binge spending and worked hard to make my payments and patch things up with my creditors. Once I showed them that I would use my credit responsibly and make all of my payments on time, my credit report history was on the way back up.

What to do with those cards…

Once I had my cards paid off, a thought crossed my mind: would I keep all of them? I didn’t really need as many credit cards as I had, but I didn’t want to damage the credit I’d worked so hard to rebuild after my brush with the bill collector grind house.

Here’s what I found out via Fair Isaac, the company behind credit scores. If you’ve had a card for a long time, it carries more weight. Luckily, that wasn’t the case with me. Secondly, how much of the total available credit you’re using is important. I had two credit cards with $1,000 total credit. One card was paid off, while the other carried a $300 balance.

I held on to one

OK, I fibbed, I still use that card after paying things off. Since I have a handle on how to repair credit now, I’m comfortable with that.

Anyway, I figured it would be safe to cancel the card I’d paid off. I’d been told that it wouldn’t damage my score, but it also wouldn’t raise it. However, by canceling that card, I’d still have a $300 balance, but my total credit line would be only $500. Thus, I’d be exceeding the 30 percent limit and damaging my overall credit score.

Thus, I didn’t cancel the paid off card. My plan is to keep things under control and use both cards to build my credit score. My credit check is thankful for it! And remember how I told you I got payday loans to help when things were at their worst? You can do it to, if you need!

Get professional credit repair help

Speak to a professional today and take proactive steps to repair your credit. For a FREE credit consultation, call 1-877-563-2076.

Hi. My name is Amy, and I live in Santa Clarita, California. I am a single mom with a 16-year-old son, James, who goes to Valencia High School. Even though I have a nice administrative office job at The Master’s College, sometimes we have to be very careful with our budget. Particularly since I’ve been trying to repair credit fast. My ex has generally been pretty good about making child support, but, well, there’s a reason that he’s my ex: reliability was never one of his strong suits.

But here’s the deal… I needed unsecured loans

So it was August, and the first summer semester was going to begin for James in just a few days. He’s a proud Valencia Viking, and it’s important to him that he fits in. I don’t have the budget for all the newest fashion trends, but I indulge him when I can. However, here’s something that came to me completely out of left field – and at a completely inappropriate time. James comes up to me and says, “Hey, mom. I need some collared shirts. It’s a new school rule or something.”

A new school rule?

Or something? Wonderful! I’d just spent all the money I’d set aside in our budget for school clothes, I wasn’t due to be paid until the following week and my ex was in between jobs. Normally I’d use my credit card in such a situation, but since I was shooting for a clean credit report after having trouble a year ago (and the card was nearly maxed), I didn’t want to push it.

At least he didn’t have to pop his collar

I understand Valencia wanting their students to look professional; once they reach the business world, it’s something they’ll have to get used to quick. But COME ON… did Vikings have to wear collared shirts went they sailed the seas, discovered new lands and sacked villages? I would think the button-ups would be an occupational hazard. God willing, I needed to come up with some extra cash before my son became a target for both school administrators and the mean kids who want to knock him down a peg. My credit report history didn’t need any more dings, so I had to figure something out fast.

Small installments-Perfect!

I’d used an unsecured loan in the past, so I contacted the company I’d gone through before for more information. Guess what? Not only are small installments right up my alley, but the loan would not register on my credit check! I applied and received approval in what seemed like just a few minutes, and then the money hit my account before the end of the day! I had a few nice collared shirts for James to wear to school the following day. To the representative whose help and kind words made a tough situation that much easier, I’d like to say “Thank you” and “God bless.” I feel like I can breathe again, and the payments are going to fit into our budget without difficulty. I can continue to repair credit fast by putting my credit card back in the drawer. Out little crisis is a thing of the past, thanks to unsecured loans!

Related Video: